Senior accounting officers under fire

HMRC is increasingly targeting chief executives as part of its efforts to hold individuals at large businesses to account with 152 chief financial officers (CFOs) and senior finance executives personally fined for tax accounting failures in 2018-19 according to Pinsent Masons.

This is an increase of 22% over the past year up from 125 in 2017-18. Only 46 individuals were fined in 2012-13 – the first year in which fines under the senior accounting officer regime were levied. 

Jason Collins partner said: ‘Tax tribunals have already called HMRC’s approach to issuing these fines heavy-handed but this does not seem to have made a difference. The fines are being used as a stick to ensure finance directors do not allow systemic tax accounting failures to arise.’

He suggested that businesses may need to invest more money in controls in this area.

The largest number of fines were imposed...